The Implications Of iTunes Variable Pricing

itunesgiftcards.jpgApple has announced that iTunes will be instituting a variable pricing method. Employing 3 different pricing plans ($.69,.99,1.29) for song purchases. The Audio Punditry Brain(dead)trust are in a uproar over the idea of raising the price for music in an economic downturn. I think the criticism is a little short sighted. Anyone familiar with the concept of supply and demand, knows that this will most likely culminate in the pricing usually being $.69. Since the demand for music purchased by legal means is low, the labels will push the price down in hopes of selling more product. What is great about this whole supply and demand thing is you only lower the price if it is going to sell you more product. If that does not work the labels go back to their old game. In this case the labels and the customer both win! Remeber when we used to go to record stores and you would see a CD on sale for $9.99 instead of all the other CDs priced at $18.99? That was to sell more copies, not to give you a present! Did we all cry and wet the bed upon entering Record Town and seeing that site? How soon we forget!

Jesse Cannon is the editor of Musformation. He produces records at his studio Cannon Found Soundation. Follow him on Twitter at @JesseCannonMusF. For more info please visit his website.